State Dept. Warehousing Contract Exceeds $30M, Awarded Sole-Source to OLGOONIK FEDERAL, LLC

Contract Overview

Contract Amount: $30,311,318 ($30.3M)

Contractor: Olgoonik Federal, LLC

Awarding Agency: Department of State

Start Date: 2017-07-01

End Date: 2021-12-31

Contract Duration: 1,644 days

Daily Burn Rate: $18.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ATA WAREHOUSE IGF::CL::IGF

Place of Performance

Location: WINCHESTER, FREDERICK County, VIRGINIA, 22601

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $30.3 million to OLGOONIK FEDERAL, LLC for work described as: ATA WAREHOUSE IGF::CL::IGF Key points: 1. Contract value of $30.3M over 4.5 years. 2. Sole-source award raises competition concerns. 3. Potential for higher costs due to lack of competition. 4. Warehousing and storage sector, NAICS 493190.

Value Assessment

Rating: questionable

The contract was awarded on a sole-source basis, making a direct pricing comparison difficult. Without competitive bidding, it's hard to ascertain if the pricing reflects market rates or represents a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to less favorable terms for the government compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for warehousing services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Ensuring efficient use of government funds is a concern.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Contract completed within duration

Sector Analysis

This contract falls within the Other Warehousing and Storage sector. Benchmarks for this sector are difficult to establish without more specific service details and competitive data.

Small Business Impact

The data indicates this contract was not awarded to a small business, nor does it specify any subcontracting goals for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the justification was sound and that proper oversight was maintained throughout the contract's lifecycle.

Related Government Programs

Other Warehousing and Storage
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award lacks competitive transparency.
Potential for inflated costs due to no competition.
Limited insight into price justification.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $30.3 million to OLGOONIK FEDERAL, LLC. ATA WAREHOUSE IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is OLGOONIK FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $30.3 million.

What is the period of performance?

Start: 2017-07-01. End: 2021-12-31.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific government requirements. Adequate documentation would include a detailed explanation of why competition was not feasible and a thorough market research effort to confirm the lack of alternatives.

How was the 'fair and reasonable' price determined for this sole-source contract, and what mechanisms were in place to mitigate pricing risks?

For sole-source contracts, price reasonableness is often determined through cost analysis, price analysis of similar items, or comparison to historical pricing. Agencies may use techniques like analyzing the contractor's cost elements, comparing to commercial prices for similar services, or reviewing previous contract data. Mitigation strategies could include negotiating specific price ceilings or performance-based payment structures.

What performance metrics were used to evaluate the effectiveness of OLGOONIK FEDERAL, LLC's warehousing services under this contract?

Effectiveness would typically be measured by metrics such as on-time delivery rates, accuracy of inventory management, damage rates during handling, responsiveness to requests, and overall adherence to service level agreements. The agency should have established clear performance standards and conducted regular reviews to ensure the contractor met these requirements throughout the contract period.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 700, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,342,148

Exercised Options: $31,634,373

Current Obligation: $30,311,318

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline